The global economy was doing relatively well more than five years ago before being hit by the economic recession. During this period, the American economy reached its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession in early 2008, which eventually turned into a major worldwide credit crisis about a year later. . While only a few countries escaped the economic recession, virtually no country managed to avoid severe stock market declines (Norris, 2012). Some countries such as the United States have experienced changes in gross domestic product and stock markets. Having the best record among major developed countries, the United States has been hit hard by the recession. When the economic recession ended, America began the process of recovering from the effects of the recession. Over the past five years this recovery process has been characterized by economic changes and fluctuations in various aspects, including interest rates, unemployment rate and inflation. Current economic situation in the United States: Compared to five years ago, the US economy has proven resilient as it continues to recover from the effects of the economic crisis and ruins towards improved health. Currently, the country's economy is weathering federal budget reductions and payroll tax increases. Furthermore, economic growth is accelerating to such a degree that some economists predict that the already five-year expansion could last longer (Klimansinska & Chandra, 2013). Signs of US economic resilience are evident at every level, such as continued household spending, a recovery in home sales, increased business investment and hiring, and a surge in the auto sector… in middle of paper….Me. On the other hand, tax cuts contribute to higher interest rates and inflation rates since people would have more money and not be afraid to spend it. As a result, businesses and companies will make more investments in the economy as demand for products and services increases. In conclusion, the US economy has experienced tremendous changes over the past five years to the point of showing resilience. The current economic state is characterized by slow growth as the country recovers from the effects of the 2008 economic crisis. However, inflation rates, interest rates and unemployment rates are still below average in terms of promotion of economic growth. Therefore, the government should consider adopting tax cuts and raising the minimum wage in an effort to encourage people to spend money to stimulate economic growth.